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Why Filing An Extension Is Important?

File extension online

Imagine opening a letter from the IRS assessing you a huge penalty because they claim you did not file your extension on time!  There are several individuals who face this exact problem.  The irritating part is that an extension request is an arguably meaningless filing since it is automatically granted if requested. But, the IRS takes it very serious.

So with April 17th fast approaching (taxes are not due on the 15th due to the federal observation of the signing of the Compensated Emancipation Act by Abraham Lincoln in 1862), how can you protect yourself?  If you are filing your own extension for your personal tax returns with the IRS use Form 4868.  Be sure to get some kind of proof of delivery and make a copy of theextension.  Even with delivery confirmation it is difficult to prove what you sent.  The best way is to e-file the extension through Extensiontax.comthat e-files and obtains an electronic confirmation.

BEWARE!!  Just because you file an extension does not grant you additional time to pay!  The tax you calculate on the return you are going to prepare and file by October is still due by April 17.  So if you think you might not have enough tax withheld, you need to make some good estimates and send in some payments.  You can send the payment Information with Form 4868, when E-filed and the money gets automatically debited from your bank account.

If you do not pay your tax or file your return on time, interest and penalties are calculated based on any amount of tax you come up short. Interest varies with market changes (currently 4 percent a year for the IRS). IRS late payment penalties are ½ percent of the balance each month (up to 25 percent).  If you fail to timely file, the IRS penalties are 5 percent of the balance each month (up to 25 percent).  You may also incur underpayment of estimated tax penalties depending on your circumstances.

Millions of people e-file their tax extension forms every year. The IRS has a digital initiative–a push to get up to 80 percent of their forms online–and tax extensions are included in that. E-filing a federal personal, business and nonprofit tax extension with Form 48687004and 8868 is quick and easy. A tax extension extends the time to file, not to pay taxes (if they are owed).
www.ExtensionTax.com is committed to provide the Best in Quality and Service for all our users,  www.ExtensionTax.com /www.TaxExcise.com is a certified, IRS authorized, e-file service provider for Form 2290Form8849Form720 & Extensions for  Form4868,  Form8868 and Form7004.

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